Gulf Air Expands Fleet with 18 Boeing 787s Powered by GE Engines
At a meeting held in Washington with U. S. President Donald Trump, the agreement was signed alongside a broader $17 billion suite of investments from Bahrain in the United States. Commerce Secretary Howard Lutnick estimated the aviation component alone at around $7 billion, with support for some 30,000 American jobs. The state-run Bahrain News Agency confirmed that all 18 aircraft will be supplied under the deal.
Under terms agreed with Boeing and GE Aerospace, 12 of the 787s will be delivered as firm orders, with options to add a further six jets. Additionally, the arrangement includes up to 40 GE engines. Based on precedents, analysts estimate the aircraft element to be worth approximately $2.8 billion.
ADVERTISEMENT
This marks Gulf Air's first significant pivot away from Rolls‑Royce, which currently powers its fleet of 10 Dreamliners. Gulf Air CEO Jeffrey Goh has previously expressed concerns about the Rolls‑Royce Trent 1000's reliability issues, indicating this switch may enhance operational stability and reduce maintenance overheads.
Industry observers note such engine shifts are not uncommon. The Boeing 787 was designed with interchangeable engine interfaces to accommodate either GE's GEnx or Rolls‑Royce's Trent 1000, simplifying transitions between manufacturers.
The deal coincides with Gulf Air's strategic expansion, including resuming direct flights to New York's JFK from October, operated by the new 787‑9 aircraft. With plans to grow its network by 25 percent over five years, the carrier aims to boost connectivity to major financial and leisure hubs.
U. S. Commerce Secretary Lutnick celebrated the sale, calling it a testament to American industrial and technological strength. Meanwhile, Crown Prince Salman stressed the authenticity of the deal, stating, 'These aren't fake deals,' and describing Gulf Air's move as both a fleet modernisation and a strategic step for Bahrain's aviation ambitions.
Beyond aviation, Bahrain pledged further investments in U. S. energy, technology, manufacturing, and security sectors. These include initiatives to enhance domestic aluminium production, LNG output, AI chip partnerships, and server infrastructure supported by firms like Oracle and Cisco. A memorandum of understanding on commercial nuclear power development was also signed.
The announcement follows a wave of Gulf deals brokered during Trump's Middle East diplomacy. In May, Qatar placed Boeing orders valued at $96 billion across wide-body fleets, Saudi Arabia committed $600 billion in U. S. investment pledges, while the UAE agreed to a $14.5 billion order for Boeing 787 and 777X jets.
Gulf Air's move to GE engines aligns with efforts to enhance reliability and streamline maintenance—a shift driven by enduring technical issues with the Trent 1000 that had led to flight cancellations and frequency reductions. GE's GEnx engines are noted for improved fuel efficiency, lower parts count, extended on-wing time, and reduced maintenance needs—reportedly 15 percent more fuel-efficient than their CF6 predecessors.
As part of the larger economic package, Bahrain's king is scheduled to visit Washington later this year to finalise the agreements and reinforce the partnership with the United States.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Etihad
25 minutes ago
- Al Etihad
Trump says deal struck with Japan, tariffs to be set at 15%
23 July 2025 08:55 WASHINGTON (DPA)US President Donald Trump on Tuesday said that a trade agreement deal was reached with Tokyo, which will see Japan "pay Reciprocal Tariffs" of 15% on goods exported to the United States."We just completed a massive Deal with Japan, perhaps the largest Deal ever made," Trump said in a post on his Truth Social platform. Trump said that Japan agreed to invest $550 billion into the US, "which will receive 90% of the Profits."He did not provide details on how the arrangement would work."This Deal will create Hundreds of Thousands of Jobs - There has never been anything like it," the post continued."Perhaps most importantly, Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things."Japan was facing 25% tariffs on exports to the US from August 1, had a deal not been struck, as per a letter sent by Trump to Japanese Prime Minister Shigeru Ishiba on July 7. The figure was one percentage point higher than the one Trump had announced in early April before enacting a 90-day pause.
Khaleej Times
25 minutes ago
- Khaleej Times
Trump says Fed's Powell will be out in 8 months, calls him 'numbskull'
US Federal Reserve Chair Jerome Powell is a "numbskull" who has kept interest rates too high, but he will be out in eight months, President Donald Trump said at a news conference on Tuesday. "I think he's done a bad job, but he's going to be out pretty soon anyway. In eight months, he'll be out," he said from a meeting at the White House with Philippine President Ferdinand Marcos Jr. Powell's term as Fed chair runs through May 15, and he has repeatedly said he will not leave the post early. Eight months run until mid-March, and it was not immediately clear why Trump picked that time frame. Trump has been hammering at Powell for months for not cutting rates and has frequently raised the possibility of ousting him, while also saying that firing him would be "unlikely." On Tuesday Trump repeated his view that the policy rate should be 3 percentage points lower than it is. The central bank's Federal Open Market Committee meets next week and is nearly universally expected to leave the policy rate in its current range of 4.25%-4.50% as policymakers wait to see how inflation and employment react to tariffs. "Our economy is so strong now, blowing through everything. We're setting records," Trump said. "But you know what? People aren't able to buy a house because this guy is a numbskull. He keeps the rates too high, and is probably doing it for political reasons." Treasury Secretary Scott Bessent, at the same meeting, trained his sights on the Fed for its non-monetary operations, again calling for a big internal investigation. White House officials have recently raised questions about a $2.5 billion renovation of two Fed buildings in Washington which they say are inappropriately lavish. "The Fed has had big mission creep, and that's where a lot of the spending is going," Bessent said. "That's where, why they're building these new, or refurbishing these buildings, and I think they have got to stay in their lane." The Fed counters that the buildings had severe safety and efficiency shortcomings that needed to be addressed.
Economy ME
25 minutes ago
- Economy ME
Crude oil prices rise to $68.75 as U.S.-Japan trade deal boosts market optimism
Oil prices increased slightly during Asian trading on Wednesday after experiencing three consecutive days of decline. This uptick follows a recent U.S. trade deal with Japan that indicates progress on tariffs, although the overall gains were limited by diminished expectations for a significant outcome at an upcoming EU-China summit. Brent crude futures climbed by 21 cents, or 0.31 percent, reaching $68.80 a barrel by 03:51 GMT (currently trading above $68.75). Meanwhile, U.S. West Texas Intermediate crude futures rose by 17 cents, or 0.26 percent, to $65.48 per barrel (currently trading above $65.45). Both benchmarks had dropped approximately 1 percent in the previous session after the EU announced it was contemplating countermeasures against U.S. tariffs, leading to waning optimism for a resolution ahead of the August 1 deadline. President Donald Trump stated on Tuesday that the U.S. and Japan had finalized a trade deal that includes a 15 percent tariff on U.S. imports from Japan. He also noted that Japan had committed to investing $550 billion in the U.S. Low expectations for EU-China Summit Traders are expressing concerns that Trump's tariff policies may result in a slowdown of global economic growth and diminished energy demand, potentially putting downward pressure on WTI prices. Trump mentioned that reciprocal tariffs would increase on August 1 for trade partners that have not reached an agreement with the U.S. Earlier this week, he threatened a 30 percent tariff on imports from the European Union (EU) if no deal was finalized. In the meantime, industry expectations remain low for Thursday's EU-China summit, which will test the bloc's unity and resolve amid escalating trade tensions with both Beijing and Washington. According to the Chinese ministry, China's commerce minister and the European Union's trade chief had a 'candid and in-depth' discussion regarding economic and trade cooperation, along with other issues that both sides face leading up to the summit. Separately, market sources reported that U.S. crude and gasoline stocks saw a decline last week, as cited by the American Petroleum Institute figures released on Tuesday. Distillate stocks, however, increased by 3.48 million barrels. Global supply glut concerns In another encouraging sign for the crude market, the U.S. energy secretary indicated on Tuesday that the U.S. is considering sanctioning Russian oil to expedite the resolution of the war in Ukraine. Additionally, worries about an expanding global oil supply glut may contribute to downward pressure on WTI. The Iraqi government has officially resumed crude oil exports from the Kurdistan Region after a halt of over two years. This move is expected to alleviate tensions between Baghdad and Erbil while boosting national export volumes. Kurdistan anticipates supplying Iraq's crude market with 230,000 barrels per day (bpd) once exports resume. The potential for increased crude exports from Iraq may enhance global oil supplies and undermine WTI prices in the near term. U.S. crude oil inventories decreased last week, which could offer some support to WTI prices. The American Petroleum Institute 's weekly crude oil stock report revealed that crude oil stockpiles in the U.S. declined by 577,000 barrels for the week ending July 18, in contrast to a rise of 19.1 million barrels the previous week. So far this year, crude oil inventories have increased by 11 million barrels, according to calculations from Oilprice based on API data.
